1:44: SVB’s place in the tech sector and how Yuval saw the short-term chain of events playing out
4:45: How would you explain the speed of the “run on the bank?
6:16: How SVB’s failure can impact the larger tech sector?
16:24: How does this event impact the embedded finance space?
The collapse of Silicon Valley Bank sent shockwaves through the economy - many people held their breath over the weekend while they waited on the Federal Reserve to give them updates on the status of their accounts.
Silicon Valley Bank (SVB), aptly named for its role in tech startup funding, has been the backbone for an entire industry. Those funded by SVB were considered having made it, backed by the most recognizable name in tech. But with the exceptionally rapid collapse, that fall from the pinnacle was unexpected and dramatic. For those in high-tech, it was an anxiety-ridden few days. For employees, the unknown around paycheck stability and ultimately job security was all-consuming. For leaders, concerns focused on the unknown. Can we make payroll, and how can we keep our employees engaged. It was a long weekend for everyone.
By Sunday evening, the Federal Reserve stepped in and ensured recovery of all deposits at the bank, settling fears temporarily. Many questions still remain, however, including the stability of the banking industry and the trickle down effects of this fallout on start-up funding and the broader economy.
Alviere Co-founder and CEO, Yuval Brisker, like many other tech firm leaders, spent the weekend navigating the SVB collapse, and sat down with Jay Saling to discuss the timeline of events, the short-term and long-term effects he believes we’ll see, and what this collapse means for fintech and the embedded finance category.
Yuval discusses Silicon Valley Bank’s one of a kind nature, and talks about the impacts that its absence will have on the tech sector and high-growth startups seeking funding.
Yuval discusses why we saw funds flow out of Silicon Valley Bank so quickly.
Yuval discusses why it’s important to work with the right embedded finance partner who works with multiple banks to diversify your account holdings and ultimately protect you from falling victim to a bank collapse.